Nvidia will buy Intel shares for $23.28 per share, the two companies announced on Thursday.
Intel will use Nvidia's graphics technology in upcoming computer chips and also provide its processors for data center products based on Nvidia hardware.
The companies specify no timeline for when the first products will start selling and said that the collaboration does not affect their individual future plans.
After the announcement, Intel's share rose by just over 25 percent in trading.
Corrected: In an earlier version of the article, the currency conversion to Swedish kronor was incorrect.
